How To Sell Your House Online

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In the past, home sellers relied on print ads and “For Sale” signs to publicize their property. But the internet has changed all that.

The advertising and marketing aspect of selling a home has been somewhat digital for some time, with Multiple Listing Services (MLS) – vetted by professional realtors – and popular real estate market sites like Zillow. Email ads and inquiries are also common. But thanks to advances in technology, the entire real estate transaction can now be conducted exclusively online, from the initial listing to the final closing.

If you’re interested in selling your home digitally, whether you hire a real estate agent or do it all yourself, here’s what you need to know and how to go about it.

The online home selling experience

When you list your home for sale, it will likely appear online on your agent’s or agent’s corporate website, as well as on MLS and popular real estate listing platforms. This can help you reach a wide range of potential buyers – especially as they search online through real estate apps and websites.

According to the National Association of Realtors’ 2021 Profile of Home Buyers and Sellers, an estimated 95 percent of homebuyers used the internet to find homes, with 41 percent beginning the buying process by viewing online listings. Virtual home tours are also on the rise, with Redfin reporting that 63 percent of buyers bought a home unseen in 2020. Additionally, buyers and sellers no longer need to be present at the closing table as virtual closings are an option in 44 US states.

Ways to Sell a Home Online

There are several ways to sell a home online, including:

• Sell ​​to an instant buyer (iBuyer): An iBuyer is a company that buys homes online directly from private sellers with the goal of reselling the home for a profit. These companies rely on computer algorithms to determine home prices, and they can quickly quote and save you the hassle of listing, marketing, and showing your home. However, iBuyers are not available in all regions and typically charge service fees of around 5 percent.
• Sell ​​with a real estate agent: Selling with a real estate agent who lists your home online is another option. Generally, real estate agents charge commissions of 5 to 6 percent of the selling price of your home. But they list, market, schedule showings and do the paperwork on your behalf, which is a huge time saver.
• sell it yourself: Listing your home online as a for sale by owner (FSBO) property is another option that can save you money on real estate commissions. However, you also have to design the listing, market your home, manage showings, and do all the paperwork.

The internet has made DIY more enticing in many ways, but it may not be as easy as it looks, many real estate professionals warn. “Marketing is limited,” says Jon Sanborn, a licensed San Diego real estate agent and co-owner of SD House Guys. “One of the best real estate marketing technologies is the MLS, which is unavailable to the average home seller who doesn’t use an agent. Selling on your own is quite time-consuming, and the average homeowner-turned-home-seller doesn’t have the knowledge of the market that a real estate agent typically has.”

How to sell your house online

Depending on the selling option you choose, the process of selling your home online may involve the following steps. If you choose to sell to an iBuyer, you most likely won’t need to list or schedule any showings, although you will need to complete the paperwork and possibly facilitate things like a home inspection.

1. Create an entry: Generally, one of the things a seller’s real estate agent does is write the listing for you, take photos of your home, and add your property to the MLS. They can even help you stage your home—either literally or digitally—to make it as attractive as possible to potential buyers. If you choose to sell on your own, you are responsible for doing these things and finding an FSBO service to list your property online. Your home will not be added to an MLS if you choose to sell it independently.
2. Plan virtual tours: If you want your entire home selling process to take place online, your real estate agent can arrange virtual tours of your property with buyers (a practice that has become particularly popular during the pandemic). They also take care of scheduling personal walkthroughs if you choose to do so. Those who list their home as an FSBO must host open houses or schedule visits themselves – or take the virtual tour, tablet in hand.
3. Complete paperwork: Bids and offers are usually sent via email these days (some people even text, although most pros recommend making things a bit more formal). Drafting and signing the purchase and sale agreement can be done online using eSign services such as DocuSign. Earnings money can be deposited directly into escrow accounts – either through traditional wire transfer or through wire transfer services such as Zelle or PayPal.
4. Plan a few personal things: There are still a few things that need to be done in person, but the brunt of this rests with the buyer: the lender’s appraisal of the property, the home inspection and the final inspection. As a rule, the seller is not present at these. With FSBO listings, you will likely communicate directly with the buyer to set up the home inspection and walkthrough.
5. Virtual Degree: The growth of remote notarization has also made remote locking possible. A few days before the scheduled closing date, final statements will either be sent via email or downloaded via links. Everyone sees and electronically signs the final purchase agreement, and the various funds and fees are also deposited in this way. Of course, some things – like keys and garage door remotes – need to be shipped.

Pros and cons of online home selling

Deciding to sell your home entirely online has its pros and cons.

advantages:

• Listing your home online will result in higher visibility, which means you may sell your home faster.
• Selling to an iBuyer can save you time as you avoid the hassle of marketing and displaying your property.
• While you still want to be aware of curb appeal, you might save some time and money cleaning and staging your home, and be less bothered by open houses and showings.

Disadvantages:

• If you choose to list your home as an FSBO, you are responsible for everything from writing the home listing to drafting contracts. This will likely be time-consuming, and unless you’re a design software pro, your offering might look lame. Seriously, you could expose yourself to legal risks if you don’t get the contracts done correctly.
• Casting a wider net about online deals could lead to baited offers or less serious buyers.
• The decision to only do virtual tours may deter some buyers who prefer in-person showings.
• You may sell your home for a lower price if you take the FSBO or iBuyer route.

Conclusion on selling your home online

If you want to sell your home online, you have several options. You can choose to sell it to an iBuyer, list it with a real estate agent, or sell it yourself. Each approach has its pros and cons, so make sure you do your research to decide which one is right for you.

In a way, the digitization of the home buying experience has made FSBO easier than ever. Although it might save you some money, selling your home requires the most work of the three options.

Working with a real estate agent can help you navigate the complex process of selling your home virtually, from listing to closing. They help with everything: marketing your home, arranging virtual tours and planning a remote closure.